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  • Professor Stefan Witte, Delft University of Technology

Transfer of Mitsubishi Power Business to MHI Completed; Operations will be Integrated into the New 'Energy Transition & Power Headquarters'

TOKYO, Oct 1, 2021 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) today has inaugurated a new structure reflecting its absorption of business previously performed by Mitsubishi Power, Ltd. Operations involving the design, manufacturing, sales, engineering and installation of Mitsubishi Power, Ltd.'s thermal power systems have been transferred to the new "Energy Transition & Power Headquarters" established within MHI's Energy Systems domain. The pre-existing business units handling GTCC (gas turbine combined cycle) systems, steam power systems and environmental plant systems have been reorganized into newly designated "Divisions." By consolidating all functions from business strategy proposal development to project execution, MHI achieves an organizational structure that will enable more responsive business operations. Moreover, by subsuming new businesses heretofore handled by the Energy Systems domain into the new Headquarters, MHI will be better positioned to respond to growing global demand for decarbonization in the energy sector.

The newly completed business integration enables the efficient simultaneous implementation of MHI's initiatives focused on achieving hydrogen and CO2 ecosystems and Mitsubishi Power's pursuit of decarbonized thermal power systems, resulting in a dynamic unified operation of the two companies' resources. Within MHI's Energy Systems domain, the NEXT Energy Business Division, which has undertaken the promotion, development and support of new businesses that contribute to decarbonization - businesses involving hydrogen and ammonia, CCUS(1), energy solutions, distributed power platforms, power generation, wind energy - is migrated into the new "Energy Transition Division," which will work closely with the divisions handing GTCC, SPMI(2) and AQCS(3). With these changes, MHI's structure will be strengthened as a comprehensive energy company.

Mitsubishi Power is a wholly owned MHI subsidiary originally established in February 2014 as Mitsubishi Hitachi Power Systems, Ltd., a company integrating the thermal power systems businesses of MHI and Hitachi, Ltd. Since its launch, Mitsubishi Power has undergone business expansion on the strength of its world-class technologies in fields including efficiency enhancement of power generation facilities and promotion of hydrogen and ammonia utilization.

These capabilities have enabled contributions to energy decarbonization and stable power provision in multiple markets around the world. While the Mitsubishi Power business functions will change, the "Mitsubishi Power" brand name, having acquired global recognition, will continue to be used for markets outside Japan. The corporate name will be retained for the corporation within Japan, functioning as the presiding company and contract agent for the core Asian and Middle Eastern markets, etc.

In its 2021 Medium-Term Business Plan released in October 2020, MHI Group announced plans to raise its corporate value significantly by 2030 through two growth engines: "Energy Transition" and "New Mobility & Logistics." Going forward, the Company will further accelerate the energy transition concentrating all Group capabilities in three core initiatives: realization of a hydrogen solutions ecosystem, development of a CO2 solutions ecosystem, and decarbonization of existing infrastructure.

With its latest organizational restructuring, MHI Group has further strengthened its ability to respond to customers' needs and the expanding global trend toward decarbonization. Applying its Groupwide strengths, the Company will contribute ever more to effective utilization of resources and reduction of environmental impacts, targeting the achievement of a carbon-neutral society.

(1) CCUS: carbon capture utilization and storage. At MHI, CCUS is being pursued in combination with thermal power systems.
(2) SPMI: steam power maintenance innovation
(3) AQCS: air quality control systems

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world's leading industrial groups, spanning energy, logistics & infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on www.spectra.mhi.com.

Source: Mitsubishi Heavy Industries, Ltd.

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